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Sep 30, 2023
Synchrony Q3 2023 Earnings Report
Synchrony's financial performance demonstrated strength with consistent growth and strong risk-adjusted returns, driven by broad-based purchase volume and receivables growth.
Key Takeaways
Synchrony Financial reported Q3 2023 net earnings of $628 million, or $1.48 per diluted share. Purchase volume increased by 5% to $47.0 billion, and loan receivables increased by 14% to $97.9 billion. The company returned $254 million of capital to shareholders, including $150 million in share repurchases.
Purchase volume increased 5% to $47.0 billion.
Loan receivables increased 14% to $97.9 billion.
Average active accounts increased 6% to 70.3 million.
Net interest margin decreased 16 basis points to 15.36%.
Revenue by Segment
Forward Guidance
Synchrony is confident in their ability to execute on key strategic priorities and drive market leading returns over the long-term, leveraging core strengths such as advanced data analytics, disciplined underwriting, and a stable funding model.
Positive Outlook
- Prioritizing sustainable growth at appropriate risk-adjusted returns.
- Selectively investing to meet the increasingly digital demands of customers.
- Advanced underwriting capabilities.
- Digital-first servicing strategy.
- Stable funding model.
Challenges Ahead
- Changing market conditions.
- Gradual normalization of credit performance.
- Impact of credit normalization.
- Higher net charge-offs.
- Higher reserve build.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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